- ETH/EUR hits fresh multi-month lows at 356 before paring some losses to currently trade at 368 levels.
- Recovery attempts lack traction, bias heavily bearish, scope for further weakness.
- The pair has broken strong support at 382 levels (converged trendline and 78.6% Fib retrace of 168 to 1168 rally).
- Price action rages in 'Symmetric Triangle' pattern and decisive breach at 'Triangle Base' could see further downside.
- Technical indicators support downside. Momentum studies are highly bearish. We see scope for further weakness.
- Next major support lies at 282 levels (88.6% Fib retrace of 168 to 1168 rally).
- On the flipside, breakout above 5-DMA at 392 could see test of 20-DMA at 471.
Support levels - 334 (Dec 8 low), 300, 282 (88.6% Fib retrace of 168 to 1168 rally)
Resistance levels - 382 (converged trendline and 78.6% Fib retrace of 168 to 1168 rally), 392 (5-DMA), 400
Call update: Our previous call (https://www.econotimes.com/FxWirePro-ETH-EUR-capped-at-5-DMA-at-425-on-track-to-test-786-Fib-382-stay-short-1220994) has hit TP1/2.
Recommendation: Bias lower, hold for further weakness.
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